Government has increased import duty by 20% on wheat

On wheat, the government has increased import duty by 20%, which is double the rate at the earlier rate. This step has come to control the cheap shipments coming to support the farmers.

The Center imposed an import duty of 50% on peas to prevent cheap shipments coming from countries like Canada.

According to a notification by the Central Board of Excise and Customs (CBEC), it said that it seems

(i) 50% of the present indigenous rate, increase in basic customs duty on peas (pisum sativum)

(ii) 10% to 20% of the basic customs duty on wheat

As the crop was excellent, in March 2017, the government imposed 10% import levy on wheat to curb domestic prices. In 2016-17 (July-June), production was 98.38 million tons.

As the higher production will check the price drop, hence with this step, the government wants to promote the morale of the farmers for the production of wheat in more area. With the new import duty on wheat, farmers should get a positive signal because the Rabi crop has started planting.

Due to a bumper crop last year, prices were low and the farmers who used to produce pulses (Kharif Season) went to other crops. Wheat farmers do not go the same way and the center wants to be sure.

In the year 2016-17, during the crop year, there was a bumper crop of pulses in India, which recorded a record production of 22 million tonnes. From this production, the domestic price fell below the MSP level. About 5 million tons of pulses were imported in the last financial year.

Import duty has also been imposed on peas to reduce shipments and increase domestic prices. The government has also taken measures to ban the imported pulses like pulses.